Market action today was interesting because the SPY (large caps) and the IWM (small caps) showed two different stories after they had been moving close to lock step. The SPY was up 0.47% while the IWM was only up 0.15%. Regular readers will note that I pay close attention to differences in large caps and small caps because I believe investors are quicker to sell the little guys when they become overbought. This information, coupled with Primary Indicator #2 crossing into the red and the Very Short Term Indicator still pegged in the red make me think that another small pullback is need before we continue the push higher. I think the medium term is still bullish because Primary Indicator #1 still has plenty of upside potential.
The SPY chart below is approaching a price point of resistance (shown in yellow dash) which could be the level it bounces off of to the low side.